June Inflation Rises To 16.5% from 15.6% in May

inflation

The much expected June inflation data is out. According to the National Bureau of Statistics, NBS, inflation for June rose by 0.9% to hit 16.5%.

“The Headline index increased by 16.5% (year-on-year), 0.9% points higher from rates recorded in May (15.6%).

“While most COICOP divisions Which contribute to the Headline index increased at a faster pace, the increase was however weighed upon by a slower increase in three divisions; Recreation & Culture, Restaurant & Hotels, and Miscellaneous Goods & Services.”

A major driver of the rate is “the Food Sub-index increased at a faster pace (increasing from 14.9% in May to 15.3% in June) driven by imported products and other food groups, the rate of increases in some food groups in particular; Vegetables and “Sugar, jam, honey, chocolate and confectionery” groups slowed, weighing on the index. Over the first half of the year, the Food index averaged 13.0% (year-on-year), up by 3.5% points from 9.5% in the corresponding period in 2015”

Also, “On a month-on-month basis, the Food sub-index slowed by roughly 1.1% points from 2.6% in May to 1.4% in June. On a month-on-month basis, the highest price increases were recorded in the Fish, Meat, Bread and Cereals, and Fruits groups. The average annual rate of change of the Food sub-index for the twelve-month period ending in June 2016 over the previous twelve month average was 11.7%, 0.5% points from the average annual rate of change recorded in May (11.2%).”

“The “All items less Farm Produce” or Core sub-index increased by 16.2% in June (year-on-year), up approximately by 1.2% points from 15.1% recorded in May. The Core sub-index has increased at a faster pace for five consecutive months. Over the first six months of the year, the Core sub index increased by 12.8%, up 5.2% points from rates recorded in the corresponding period in 2015. On a month-on-month basis, after a brief uptick in May, the rate of increases in the Core sub-index continued to slow in June.

However, “The index increased by 1.8%, lower by 0.9 points from rates recorded in May. In June, on a month-on-month basis, the highest price increases were recorded Motor cars, Electricity, Solid Fuels, Fuels and Lubricants for Personal Transport Equipment groups amongst others. The average twelve month annual rate of rise of the index was recorded at 10.9% for the twelvemonth period ending in June 2016, roughly 0.7% points higher from the twelve month rate of change recorded in May (10.2%).”

This figure shows Nigeria’s economy has been badly hit by the new Forex policy which many quarters termed as devaluation.

 

Details shortly.

 

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